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4. Given the Cash Flows associated with Projects P & Q, and the 10% WACC for both firms, what are the Internal Rates of Return
4. Given the Cash Flows associated with Projects P & Q, and the 10% WACC for both firms, what are the Internal Rates of Return for Projects L & S and what is the Internal Rate of Return (IRR) Crossover Rate?
WACC = 10%
Period NPVL NPVS
0 -100 -100
1 15 70
2 60 55
3 80 20
IRR Project L =
IRR Project S =
IRR Crossover Rate =
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The Wall Street Journal Complete Personal Finance Guidebook
Authors: Jeff D. Opdyke
1st Edition
030733600X, 978-0274804573
